Case Study 3

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Income (£1000s) Household Size Amount Charged (£)

104 4 4516
80 4 3659
82 4 5600
100 6 5242
81 4 2364
105 2 4570
87 2 3231
90 4 3848
116 4 5264
101 4 4610
75 5 4708
98 4 4719
77 2 2977
83 4 3014
115 3 4714
113 5 5465
92 8 4912
71 2 2948
94 2 3495
87 7 4671
112 6 6178
71 4 4123
105 9 5801
92 2 3520
91 8 5328
104 8 6073
80 1 3083
98 3 4366
84 7 4086
117 4 5537
100 3 4105
117 7 5845
105 6 5870
102 3 4390
112 5 5205
114 2 4657
72 4 4079
79 6 4390
89 2 3472
85 2 3621
89 6 4683
104 3 4230
73 7 4627
77 4 3421
76 7 5103
111 3 4773
80 4 3567
72 4 3574
96 6 5320
116 6 5649
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.630974186
R Square 0.398128423
Adjusted R Square 0.385589432
Standard Error 731.7132298
Observations 50

ANOVA
df SS MS F Significance F
Regression 1 16999744.786 16999744.79 31.75123239 9.012482E-07
Residual 48 25699404.034 535404.2507
Total 49 42699148.82

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%


Intercept 680.0111389 679.472970979 1.000792037 0.321946027 -686.1608334 2046.183111
Income (£1000s) 40.47976959 7.18385798806 5.634823191 9.012482E-07 26.035655024 54.92388415
Lower 95.0% Upper 95.0%
-686.1608334 2046.1831112
26.035655024 54.923884153
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.646461966
R Square 0.417913074
Adjusted R Square 0.405786263
Standard Error 719.5863436
Observations 50

ANOVA
df SS MS F Significance F
Regression 1 17844532.5337 17844532.53 34.46191049 3.952227E-07
Residual 48 24854616.2863 517804.506
Total 49 42699148.82

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%


Intercept 3104.515763 252.964370998 12.27254159 2.0601E-16 2595.8968062 3613.13472
Household Size 306.203657 52.1603741753 5.870426772 3.952227E-07 201.32819571 411.0791183
Lower 95.0% Upper 95.0%
2595.8968062 3613.1347197
201.32819571 411.07911829
SUMMARY OUTPUT

Regression Statistics
Multiple R 0.8661202942
R Square 0.7501643641
Adjusted R Square 0.7395330604
Standard Error 476.41768278
Observations 50

ANOVA
df SS MS F Significance F
Regression 2 32031379.8223 16015689.911 70.56184156 6.996455E-15
Residual 47 10667768.9977 226973.80846
Total 49 42699148.82

Coefficients Standard Error t Stat P-value Lower 95% Upper 95%


Intercept -258.8295471 457.198683743 -0.566120499 0.574005167 -1178.594662 660.9355678
Income (£1000s) 37.122913327 4.69555548638 7.9059684066 3.520214E-10 27.67667412 46.56915253
Household Size 282.12603814 34.6679316185 8.1379541544 1.586688E-10 212.38315558 351.8689207
Lower 95.0% Upper 95.0%
-1178.594662 660.93556776
27.67667412 46.569152533
212.38315558 351.8689207
Income (£1000s) Household Size
R Square 0.39812842307 R Square 0.4179131
P-value 9.0124823E-07 P-value 3.95E-07

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